The world’s largest crypto has punched to its highest levels since August, with crypto-linked stocks also soaring in tandem on Wednesday:
In full admission, the expected price reaction stated in Tuesday’s crypto article did not materialise: the higher-then-expected US inflation data did not drag Bitcoin back into sub-$21k territory.
Instead, it’s on course for 3-consecutive days of gains for the first time in four weeks.
Market data suggests a short squeeze has lent themselves to this recent price surge, with Coinglass data pointing to US$64.5 million of short positions in Bitcoin being liquidated yesterday.
The surge across crypto land suggests that, not only were markets able to shrug off Tuesday’s higher-than-expected US inflation data, but also heightened regulatory woes.
Here are just some recent developments on that front from the past week alone:
The crypto world is expected to continue wading through the ongoing fallout from last year’s high-profile implosions and the tightening regulatory net for a long while more.
At least for the near-term, the latest price surge should at least hearten crypto afficionados who might be able to ride this bullish momentum for a little while longer, especially if Bitcoin can officially reclaim the $25k handle.
And with broader US stock futures also pointing to a positive open at the time of writing, such risk-on mode for broader equity markets may spell further immediate gains for crypto-linked stocks on US exchanges as well.
Should markets increasingly expect an actual Fed rate cut in Q3 2023, or even an official pause on the Fed rate-hiking cycle at its next policy meeting in May (52% chance of such an occurrence), that should help the Nasdaq 100 officially lay claim to a bull market.
23 March 12:10
Governments and central banks across major economies are scrambling to limit the knock-on effects from the rapid collapse of Silicon Valley Bank (SVB), a key financier of the tech and startup ecosystem around the world.
13 March 11:19
However, this latest iteration is likely to succumb to fundamental drivers over the course of this month that are set to have a greater influence rather than technical signs.
9 March 11:56
At the time of writing, the futures contracts for the S&P 500 are extending February’s declines into this month. At the time of writing, the benchmark index for US stock markets has gone below the widely-watched 100-day and 200-day simple moving averages (SMA), having earlier already broken below the uptrend line from October’s trough.
2 March 11:05
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